 Dennis King
(513) 378-5464
ABR,CRS,E-ProComey and Shepherd
Licensed in Ohio
Contact Dennis
Toll Free 800-899-4629
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SELLING THE BEST OF GREATER CINCINNATI FOR 29 YEARS!
"Cincinnati One Of The Best Real Estate Markets In The Country"
Call Me, A Professional with Over 1,750 Sales!
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Dennis King
Comey and Shepherd
7870 East Kemper Rd. Cincinnati,OH 45249
(513) 489-2100 Office
(513) 297-0769 Fax
Toll Free: 888-755-5096
Email: dennis@dennisking.com
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Watch Newest National Association of Realtors Videos!
Why Homeownership Matters! Click On Photo Below! It May Take A Minute To Download! But Well Worth The Wait!
TODAY'S BREAKING REAL ESTATE NEWS!
5/18/12
Protecting Your Best Investment
by Nick 30. April 2012 11:02
Check out this Link explaining the need for Owner's Title Insurance!
www.designingspaces.tv
Buying A House After Foreclosure, Short Sale or Bankruptcy or Deed In Lieu!! What Are The Guidelines The Banks Are Using??
Go to my Reports and Forms Tab on the left of this screen and go to the bottom of that page for a full explanation of what the banks are looking for credit wise! How many years do you have to wait to buy using FHA Financing versus Conventional Financing? There are many contributing factors to consider! These rules are changing all the time so be sure to check with me or a good loan officer and if you don't know one, I can refer someone. The Real Estate King in Cincinnati!513-378-5464
Dennis King Greater Cincinnati Ohio
Big Turn Around In The Real Estate Market? My Crystal Ball Says That The Cincinati Market Is Already Improving!!
Real estate economists and analysts are increasingly optimistic that the housing market will have a dramatic recovery in the next two years, according to results of a new semi-annual survey of 38 real estate economists and analysts conducted by the Urban Land Institute’s Center for Capital Markets and Real Estate. The economists predict that the national average for home prices will stop falling by this year and a subsequent turnaround will occur. By next year, they project that home prices will begin to rise by 2 percent, and then get a larger boost of 3.5 percent by 2014. The economists also predict that housing starts will nearly double by next year. They also foresee rental prices continuing to increase for all property types, ranging from 0.8 percent to 5 percent. The economists’ predictions were made on assumptions that the economy would continue to strengthen, including a larger drop in unemployment. “While geopolitical and global economic events could change the forecast going forward, what we see in this survey is confidence that the U.S. real estate economy has weathered the brunt of the recent financial storm and is poised for significant improvement over the next three years,” says Patrick L. Phillips, ULI chief executive officer. “These results hold much promise for the real estate industry.” Source: RISMedia
A lender will, on occasion, forgive some portion of a borrower’s debt. The general tax rule that applies to any debt forgiveness is that the amount forgiven is treated as taxable income to the borrower. Some exceptions to this rule are available, but, until recently, the borrower was required to pay tax on the debt forgiven. A law enacted in December 2007 provides relief to troubled borrowers when some portion of home loan debt is forgiven. However, this relief expires on December 31, 2012 and NAR will be working to obtain an extension throughout the year. Source: National Association of Realtors. Want more information regarding the provisions on this law? We have a communication from the IRS that gives key points regarding cancellation of home loan debt. Contact me and I will forward you a copy of this article.
More households are moving to East Coast states while leaving Rust Belt states -- the area in the U.S. between the Midwest and the Northeast -- where unemployment remains high, according to the latest Atlas Lines Migration Patterns study, which has tracked the nation’s moves since 1993. For the fifth year in a row, Washington, D.C., had the highest percentage of inbound moves while Ohio had the highest percentage of residents leaving, or “outbound moves.” Meanwhile, western states mostly stayed balanced in moves for the year. Several southeastern states, such as Florida and Georgia, also stayed balanced in moves despite high foreclosure rates, possibly because they also serve as retirement hot-spots, according to the survey. The summer months continued to have the largest number of moves per season, according to the survey. Source: Atlas Van Lines 2011 Migration Patterns
Want to know how to figure out your propertty tax bill? I have attached the Effective Tax Rates Payable in 2012 for Hamilton, Butler, Warren and Clermont Counties in Ohio. They are in the Reports and Forms tab on the left of this page! The rates are at the bottom of the Reports and Forms page. Please call me Dennis King with any questions at 513-378-5464.
Hot Breaking News! Cincinnati Home Sales Data! March 2012 State of The Market Info and February Sales Charts!
Check Out The Latest Information HERE from The Real Estate King In Cincinnati! Go to 9th button down on left side of this page it says Reports and Forms! See housing sales up, inventory down, average sale prices?? Call me for the FACTS! 378-5464 Nobody has more!
Mortgage Changes are Coming !!!!
FHA Mortgage Insurance Costs To Rise In April
The Federal Housing Administration (FHA) has announced that they are raising the cost of mortgage insurance starting April 9. This move is meant to increase the financial viability of the FHA mortgage program so that it does not need a government bailout as was required for Freddie Mac and Fannie Mae.
For consumers, it means that you have a window of opportunity in order to purchase or refinance using FHA financing under the old mortgage insurance structure. Your application must be in hand well before April 9 in order to beat the increase – however the transaction can close after that date.
How much is the increase? FHA has two types of insurance premium costs, up-front and monthly. The up-front premium is added to your loan amount and the monthly premium is added to your payment. As of April 9 the premiums will go up as follows:
The up-front premium will move from 1.00% to 1.75%. If your mortgage amount is $200,000, this would be a one-time increase of $1,500.
The monthly premium will increase from 0.10% to 0.35%, depending upon the loan size–with larger loan amounts increasing the extra .25% as of June 11.
You can see why we think it is advantageous for you to act quickly. For those purchasing, rates are at historic lows, home prices are the lowest in almost a decade and FHA allows a down payment of as little as 3.5% of the purchase price. For those refinancing, not only are rates low, but FHA also has a streamline alternative which allows a loan amount up to 125% of the current value of your home if it is currently financed with a FHA mortgage.
In short, this is a once in a generation opportunity and you must act quickly because we are expected to be very busy during the month of March.
Not sure if an FHA mortgage will benefit you?
Contact me for a free article: FHA Provides Alternatives.
Relocating Home Buyers in Cincinnati Ohio, New Construction Home Buyers, Moving Up To A Bigger Home Buyers, Empty Nester Buyers, Downsizing Home Buyers need to call Dennis King for all the information and help you need in making this move wisely, for you and your family. There are a lot of things to take into account when you buy or sell a house. Call Dennis King Realtor with almost 30 years experience at 513-378-5464. In this market INFORMATION IS KING. Call Dennis King "The Real Estate King" and put him to work on your side of the transaction. It costs you nothing but could save you thousands of dollars!
Smart First Time Buyers CALL ME to HELP YOU Make The Best Financial Decision For You and Your Family or Future Family!!
Dennis King 513-378-5464 With over 1700 sales I really can help you to make the right decisions in Real Estate! My services are FREE to you. It costs you no more to have 30 years worth of experience and expertise as it does a brand new agent! The sellers pay the commission. Put your Trust in someone with experience that puts YOUR BEST INTERESTS FIRST! I want you to get the best house for the best price in the best areas you want to buy. The decisions you make will afect your future! It used to be if you paid too much you could wait a year or two and the market value would eventually catch up to your price. This is not the case today. Prices are not going up like they once did. Your decision is far reaching. It will affect your spouse and your children and their education and possibly your retirement and quality of life. This decision to buy is not to be taken lightly. Most mortgages are for 30 years. Do you want to trust that to just any agent or yourself and your own personal knowledge of the real estate market and trends? Or do you want an experienced professional that truly cares about you and your wants and needs, now and in the future. Just because it may be easy FOR YOU TO QUALIFY to buy, you should have the best counseling and advice available. I am not trying to get a sale today I am trying to get a client and friend for life!
Greater Cincinnati Sales of Single Family Homes By School District 2011 vs 2010!
For reports on sales by school districts of single family homes in 2011 and 2010 in Greater Cincinnati, please play the Visual Tour Presentation at the top of this page. I did a voice over on the summary page of the school districts and some other pages also. You can print this report and also find a PDF of all the reports, in Reports and Documents tab on left side of screen in Green Text. I have put together a list of sales for the following School Districts in Greater Cincinnati. The school districts are Cincinnati Public Schools, Deer Park Schools, Fairfield Schools, Forest Hills Schools, Indian Hill Schools, Kings Mills Schools, Lakota Schools, Little Miami Schools, Loveland Schools, Mason Schools, Milford Schools, Princeton Schools in Sharonville only, Sycamore School District and Wyoming School district sales of Single Family Homes in 2011 vs. 2010. If you want more information just contact me by phone,text or email. My email is dennis@dennisking.com. I hope you like it Dennis King 513-378-5464 Cincinnati, Ohio with Comey and Shepherd Realtors.
Breaking News! Check out the latest sales data on the Cincinnati Real Estate Market for 2011 back to 2000 and beyond. Information you need to make wise decisions about your real estate purchase or sale. Just click on the Cincinnati Skyline Photo at the top of the page. There are the latest charts and graphs and an audio overlay to quickly highlight some interesting facts on the charts and graphs. For all your real estate needs call Dennis King at 513-378-5464 in Cincinnati, Ohio with Comey and Shepherd Realtors. I specialize in relocation, first time buyers and my past clients over 1,700, new construction, short sales and foreclosures.
Repayment of Tax Credits is REAL!
Dennis' Tip: Repayment of Tax Credit Is Real
The harsh reality of the home buyer’s tax credit is…under certain circumstances the tax credit needs to be repaid in whole or in part.
What are the circumstances…continue reading the “word” from irs.gov (click this link for the full documentation: www.irs.gov .
When selling a home for a property purchased in 2008-2010, you should inquire whether or not the you took advantage of the tax credit, repayment may apply to you.
If you have any questions on this contact your accountant or me Dennis King a realtor with 29+ years experience in buying and selling real estate. The IRS has a phone line that can help you. Go to the LINK above to see the phone numbers to call.
Please click on Reports and Forms under my Buyer and Seller button to see a chart they spells out more clearly some of the situations sellers may encounter depending on which credit you used when buying your home if any. All Credits are different!
Have Your Home and Business Too by PJ Wade
"Have Your Home & Money Too" remains a key theme in my "Decisions & Communities" column since being well-housed is a vital contributor to financial security, healthy living, career success, and goal achievement in general. In 2012, we’re adding a significant twist on this important real estate and lifestyle goal - an expansion into financial and lifestyle sustainability suitable to living with uncertainty - both exciting and exhausting - over the decades ahead. The age-driven mandatory "end of work" no longer dictates individual futures. Now, living to an independent, active age 100 is no longer news. However, for many, an overhaul of thinking and decision-making processes is essential to creating a desired, secure future, in business and in life.
With 21st-Century goals for real estate ownership and income-earning power aligned to "Have Your Home & Business Too," property owners can experience satisfaction, flexibility, and security for home and finances during the years ahead, whatever happens or doesn’t. Homebased businesses offer many benefits, not the least of which are income tax advantages that keep more money in your pocket, and environmental gains which can reduce carbon footprints. A homebased business (HBB) makes your home a partner in your financial future in a variety of ways, which you will discover as we cover topics from commuting benefits and succession strategies, to using HBB income and tax deductions to increase real estate purchasing power.
Those who maintain the 20th-Century caretaker view of their real estate as something to look after - a financial burden - may become vulnerable to the stereotypic path of "being moved to a home" by heirs or the government since these owners may not have specific, adaptive alternatives in place to cover contingencies, and preserve independence and control. They may also persist with the 20th-Century "everything will turn out alright" false hope, instead of deliberately protecting income with back-up earning strategies.
HBBers know the future evolves from their choices, and is not set in stone. Would you prefer to design the future of your choice, or make the best of what happens?.
•If you don’t take control and command of your life and your future, who will?
•If you don’t use and enjoy accumulated value in your real estate - your equity - who will?
•If you don’t keep control of earning power and maximize tax savings, who will?
•If you don’t strive for purpose in life and for valued community contributions, who will?
The uncertainty of the future plagues many people these days. What they forget is that the future has always been uncertain. Their certainty about tomorrow was ill-founded. This Century’s economic and political upheavals have remind us that we don’t know what and who we can count on beyond ourselves. It’s not radical thinking to take your future in your own hands, it’s the new common sense.
HBBs are as varied as the people who create them and the real estate that houses them. In fact, the only thing HBBs have in common is their homebase. Increasing numbers are partially or entirely online, and more and more are fulfilling alternatives to traditional "cubicle" jobs. Whether you’re a HBBer now or can’t imagine what business you could operate, "Have Your Home & Business Too" lifestyles are within reach, they may just require a non-traditional pathway. Yours may become a full-time career, a commerce hub contracting to other HBBs across the net, or a part-time or seasonal venture which broadens your horizons. Some HBBs grow out of hobbies or interests, while some arise from keen observation and inspired commitment. Others are extensions or specializations drawn from successful careers. Your home may serve as an incubator of a greater venture, or you may have more than one HBB at a time. Your venture may enable you to buy more land or house than you could otherwise afford.
Many people believe the greatest challenge lies in deciding what they want from the future. This misconception arises from weak decision-making skills which lead people to believe that because they have trouble making up their minds on a daily basis, they’ll never succeed at visualizing their future. In reality, problems arise from lack of clarity about the starting point. For instance, deciding on the best route for a trip is difficult when you don’t know exactly where you’re starting from. This uncertainty is compounded by the fact that what got you where you are today has been replaced by different choices and pathways, some better, some not. The future is not about repeating past success or copying that of others, but about re-imagining success and discovering the best path for you based on today’s opportunities, obstacles, technology, and connections, online and off.
Where are you starting from?
•The reasons you bought your current home, cottage, and business real estate are not the reasons you still own these properties. How do you know that holding on to an existing property holds the best long-term benefits for you? Are you knowledgeable about alternatives or just too overwhelmed by the prospect of moving to investigate choices? The information essential to evaluating what makes sense for you real-estate-wise is not in your head. It’s time for expert advice to avoid second-guessing yourself in hindsight. Real estate professionals offer free evaluations to bring you quickly up-to-date with market value. They can also provide a list of options in housing style, location, and investment to trigger forward thinking.
•Your income-earning potential has changed since you bought your real estate. Economic shifts may have negatively or positively impacted long-term prospects for you and your partner. If you don’t want to, or won’t be able to, continue to work and earn as you have, what prospects exist for you now in addition to traditional choices? By investigating how a homebased business could benefit you, you’ll be exploring a widening range of choices, in business and in life.
•By clarifying where you are in your grand scheme of things, you’ll discover gaps, overlooked opportunity, redundancies, and no-longer-relevant activities. Remove the clutter and reveal what to accomplish next, and next….
Start 2012 off on the right path toward the future you choose whether it includes buying real estate or expanding your passion into a HBB:
1.Resolve to do what you want, not what others dictate you should do. Consider the source when you take direction on how to think or implement ideas. Those stuck in the 20th Century may miss unfolding opportunities associated with first-time-in-history shifts in technology and everything else.
2.Talk is cheap. There is only one person to convince - yourself. Commit to yourself on paper. Be specific about what you want to achieve.
3.Be realistic. If you want to alter or eliminate aspects of your life, set reasonable time frames.
4.Identify the steps to success. Break change down into "doable" steps and arrange your strategies to move from step to step as smoothly as possible. Start with a list of giant steps and fill in the gaps.
5.Anticipate setbacks. Set yourself up to win by preparing for a few speed bumps ahead. You know what you traditionally overlook when tackling something new. Set out not to repeat dead-end patterns.
Published: January 10, 2012
Is a Smaller Home for You?
Downsizing??
Studies over the past few years have shown a solid trend regarding home sizes. Buyers today want smaller homes with smaller price tags. During the boom era in the mid-2000's, homeownership was about McMansions and spacious sprawls. The recent recession and continued ailing recovery have made many families rethink their budgets and lifestyles. A 9.1 percent unemployment rate hasn't "helped."
So, this question is posed. How much space does your family really need? This isn't a simple cut and dry question. Every family has different needs and dynamics.
Let's put things into perspective, though. Having a large, show-stopper home doesn't equate with family happiness. Many families in centuries past lived happily in one room cabins and small-scale homes.
There are social benefits to sharing tighter quarters. Some families feel that smaller homes forces more together time, which means more time for bonding and strengthening relationships.
Smaller homes mean reduced costs across the board. Let's examine these for a moment. Property taxes are based on the value of your land and home. While more prestigious neighborhoods and homes within city limits typically pay higher taxes, remember that a smaller home in that same prestigious neighborhood will pay a smaller dollar amount in taxes each year. Maintenance costs are also lower. It costs much less to replace a roof on a 1,000 square foot house than it does on a 6,000 square foot one!
The same goes for home insurance and, let's not forget, the actual purchase price of the home. Reduced size means reduced costs.
Perhaps the most important item is reduced energy costs. Smaller homes take less energy (and money) to heat and cool. Plus, there are fewer rooms and that means fewer lights to be left on!
Today's standard home, according to recent statistics from the Census Bureau’s Survey of Construction, is 2,150 square feet. This is down considerably from the boom era seen just 5 or 6 short years ago.
These standard houses have 2.5 baths and 3 bedrooms. Can your children share a bedroom? You bet. It can teach responsibility, sharing, and how to get along with others. These are all great lessons to learn as a child.
These standard houses also feature a garage, central air, a fireplace, separate dining room, and three miscellaneous rooms. This doesn't sound like a one room shack! It's simply an adjustment from the McMansions that boasted media rooms, exercise rooms, 5+ bedrooms, and a bathroom for every member of the family.
Just 60 years ago, when many people's grandparents or parents were first entering the housing market, the average home was just 1,000 square feet. Quaint and charming, these houses made warm and loving homes.
If you're thinking of entering the housing market and are feeling trapped by shrinking budgets, just remember that smaller houses can be just as charming, functional, and full of love!
Mortgage Rates Keep Falling!
Mortgage Rates Fall, Housing Opportunities Getting Better
by Phoebe Chongchua REALTY TIMES
For four weeks in a row, mortgage rates are seeing historic lows. The 30-year fixed average interest rate fell from 4.09% to 4.01% in the end of September. This marks the lowest rate since 1951.
Also, economists call the 15-year fixed mortgage drop to 3.28% the lowest ever for that loan. It appears they could go even lower as the Federal Reserve announced that it will push long-term rates down further.
These historically low mortgage rates aren't necessarily rapidly selling homes. Across the country contract signings have been down. According to USAToday.com, “July's index fell 5.8% in the Northeast, 3.7% in the Midwest and 2.4% in the West. It rose 2.6% in the South.”
The index of sales agreements, tracked by the National Association of Realtors, showed a 1.2% drop down to 88.6 (100 is considered healthy).
Still the opportunities for homeownership keep getting better. Some markets are more affordable than ever; prices have been cut in half in some metro areas.
Of course, getting a loan can be part of the barrier to entry in the housing market. These days, to qualify for a loan a 20% downpayment coupled with a high credit score are required by some lenders.
Now, a new credit score service being introduced in November claims it will give lenders a more accurate picture of a borrower's outstanding debts. The company's website has a countdown to the release of CoreScore (credit report from CoreLogic). It touts the system as a way to “see borrowers as you've never seen them before.”
Some lenders are being extremely strict because they have difficulty determining previous credit behavior. But according to CoreLogic, everything will soon change. The CoreScore credit report is a supplement, not a replacement for the current credit reporting systems.
According to the company, “The supplemental information the CoreScore credit report provides will expand your view of borrower credit profiles and deliver important insight into unseen risk and opportunities.”
Among the information that the CoreScore report will deliver to lenders are the following:
1.Properties owned—with and without debt obligations Mortgage obligations with companies that may not report to traditional credit reporting agencies
2.Property legal filings, such as notices of default
3.Property tax amounts and payment status
4.Estimated market values on all U.S. properties owned
5.Rental applications and evictions
6.Inquiries and charge-offs from pay-day and online lenders
7.Consumer-specific bankruptcies, liens, judgments and child support obligations
With mortgage restrictions tighter than ever and more supplemental information being offered to lenders about borrowers' debts and credit behavior, it's vital for borrowers to understand the most important qualifying factors that influence lenders.
The chief concern is the ability to repay the loan followed closely by the willingness to repay.
Borrowers can place themselves in better standing with lenders by doing two key things: paying off as much debt as possible before applying for a mortgage. This is always good as it lowers the debt-to-income ratio. Secondly, lenders examine borrowers' track record of repayment to determine how they will behave if they are issued a loan. Making sure that credit behavior is monitored and any discrepancies are handled before applying for a loan will help borrowers have a cleaner record and increase the chances of qualifying for a mortgage.
Can a Landlord Prohibit Smoking?
by Bob Hunt
Is it legal for a landlord to prohibit tenants from smoking in their units and/or other places on the premises? The answer to this question may well vary from state to state, although Federal considerations will be common to all.
In California, the answer to the question has been clarified by the passage of Senate Bill 332 (Padilla) which was signed into law by Governor Brown September 6, 2011. The core of the bill is this: “A landlord of a residential dwelling unit…may prohibit the smoking of a cigarette…or other tobacco product on the property or in the building or portion of the building, including any dwelling unit, other interior or exterior area, or the premises on which it is located…”
After January 1, 2012, if a landlord has such a prohibition in effect, “Every lease or rental agreement…shall include a provision that specifies the areas on the property where smoking is prohibited…”
Suppose the tenant already has a rental agreement or that the landlord has adopted a rule prior to 1/1/2012? The new rules must be communicated in a written “change of terms of tenancy” to be provided according to the requirements of other notices. As the senate bill analysis pointed out, “the length of the notice is important as resident smokers facing new prohibitions on smoking must be given adequate time to move, apply for a waiver…or quit the habit. California already requires a month’s notice for any modification of month-to-month leases.”
Was the new law necessary? A variety of legislative analyses noted that no current law prohibited landlords from enacting such a policy. Nonetheless, bill supporters such as the California Apartment Association noted that the lack of any law had created confusion and that it would be beneficial that a landlord’s right to do so be codified. The Association has stated that “smoking is a major source of conflict between smoking and non-smoking tenants.”
It is good that this matter has been clarified, however, in California at least, other questions remain: OK, landlords can ban the smoking of tobacco products, but what about other substances?
Ever-sensitive to the issues that face their members, the legal department of the California Association of Realtors® (CAR) has produced a memorandum entitled “Medical Marijuana Issues for Realtors®”. It’s not as clear as tobacco.
As a result of California’s “Compassionate Use Act” (a statewide initiative) and Senate Bill 420, The Medical Marijuana Program Act”, “…California laws which provide for criminal penalties…do not apply to persons such as a qualified patient, a person with a state-issued medical marijuana identification card, or a primary caregiver who act in accordance with the requirements of the Compassionate Care Act and SB420.”
Suffice it to say that an inordinate number of Californians meet the criteria for being a qualified patient.
On the other hand, the memo points out, “Marijuana possession, cultivation, processing, etc. are all illegal under federal law with no exceptions.”
So, what is a landlord to do? The CAR position is that, yes, a landlord can prohibit smoking (and possessing) marijuana. This is because, “Most leases, including the C.A.R. residential lease, prohibit the tenant from engaging in conduct that violates the law.” Moreover, the memo notes that a landlord who knowingly permitted illegal marijuana possession or use could expose his property to possible federal seizure.
Still, the discussion goes on to acknowledge that there could be practical problems in trying to enforce a prohibition through action such as eviction. “Even though a lease requirement to obey all laws seems to be a straightforward proposition, it is possible that a state court judge or jury may not view it as applying to a federal law violation. Certain areas have judges and juries which may not see it as their place to enforce federal law violations.”
No one said this was going to be easy.
Published: October 4, 2011
108 Stores with Discounts for Seniors
Gone are the days of your grandmother's "early bird special" at the local diner. As our baby boomers reach retirement age, hundreds of retailers are featuring new and improved discounts exclusively for the 60 and older crowd. Below is a list of senior savings that will help you keep more cash in your pocket. Whoever said getting older was a bad thing, obviously didn't know about these fantastic senior discounts!
Restaurants
Applebee's: 15% off with Golden Apple Card (60+)
Arby's: 10% off (55+)
Ben & Jerry's: 10% off (60+)
Bennigan's: discount varies by location
Bob's Big Boy: discount varies by location (60+)
Boston Market: 10% off (65+)
Burger King: 10% off (60+)
Captain D's Seafood: discount varies on location (62+)
Chick-Fil-A: 10% off or free small drink or coffee (55+)
Chili's: 10% off (55+)
CiCi's Pizza: 10% off (60+)
Culver's: 10% off (60+)
Denny's: 10% off, 20% off for AARP members (55+)
Dunkin' Donuts: 10% off or free coffee (55+)
Einstein's Bagels: 10% off baker's dozen of bagels (60+)
Fuddrucker's: 10% off any senior platter (55+)
Gatti's Pizza: 10% off (60+)
Golden Corral: 10% off (60+)
Hardee's: $0.33 beverages everyday (65+)
IHOP: 10% off (55+)
Jack in the Box: up to 20% off (55+)
KFC: free small drink with any meal (55+)
Krispy Kreme: 10% off (50+)
Long John Silver's: various discounts at participating locations (55+)
McDonald's: discounts on coffee everyday (55+)
Mrs. Fields: 10% off at participating locations (60+)
Shoney's: 10% off
Sonic: 10% off or free beverage (60+)
Steak 'n Shake: 10% off every Monday & Tuesday (50+)
Subway: 10% off (60+)
Sweet Tomatoes 10% off (62+)
Taco Bell: 5% off; free beverages for seniors (65+)
TCBY: 10% off (55+)
Tea Room Cafe: 10% off (50+)
Village Inn: 10% off (60+)
Waffle House: 10% off every Monday (60+)
Wendy's: 10% off (55+)
White Castle: 10% off (62+)
Retail and Apparel
Banana Republic: 10% off (50+)
Bealls: 20% off first Tuesday of each month (50+)
Belk's: 15% off first Tuesday of every month (55+)
Big Lots: 10% off
Bon-Ton Department Stores: 15% off on senior discount days (55+)
C.J. Banks: 10% off every Wednesday (60+)
Clarks: 10% off (62+)
Dress Barn: 10% off (55+)
Goodwill: 10% off one day a week (date varies by location)
Hallmark: 10% off one day a week (date varies by location)
Kmart: 20% off (50+)
Kohl's: 15% off (60+)
Modell's Sporting Goods: 10% off
Rite Aid: 10% off on Tuesdays & 10% off prescriptions
Ross Stores: 10% off every Tuesday (55+)
The Salvation ArmyThrift Stores: up to 50% off (55+)
Stein Mart: 20% off red dot/clearance items first Monday of every month (55+)
Grocery
Albertson's: 10% off first Wednesday of each month (55+)
American Discount Stores: 10% off every Monday (50+)
Compare Foods Supermarket: 10% off every Wednesday (60+)
DeCicco Family Markets: 5% off every Wednesday (60+)
Food Lion: 6% off every Monday (60+)
Fry's Supermarket: free Fry's VIP Club Membership & 10% off every Monday (55+) Great Valu Food Store: 5% off every Tuesday (60+)
Gristedes Supermarket: 10% off every Tuesday (60+)
Harris Teeter: 5% off every Tuesday (60+)
Hy-Vee: 5% off one day a week (date varies by location)
Kroger: 10% off (date varies by location)
Morton Williams Supermarket: 5% off every Tuesday (60+)
The Plant Shed: 10% off every Tuesday (50+)
Publix: 5% off every Wednesday (55+)
Rogers Marketplace: 5% off every Thursday (60+)
Uncle Guiseppe's Marketplace: 5% off (62+)
Travel
Alaska Airlines: 10% off (65+)
Alamo: up to 25% off for AARP members
American Airlines: various discounts for 65 and up (call before booking for discount) Amtrak: 15% off (62+)
Avis: up to 25% off for AARP members
Best Western: 10% off (55+)
Budget Rental Cars: 10% off; up to 20% off for AARP members (50+)
Cambria Suites: 20%-30% off (60+)
Clarion: 20%-30% off (60+)
Comfort Inn: 20%-30% off (60+)
Comfort Suites: 20%-30% off (60+)
Continental Airlines: no initiation fee for Continental Presidents Club & special fares for select destinations
Dollar Rent-A-Car: 10% off (50+)
Econo Lodge: 20%-30% off (60+)
Enterprise Rent-A-Car: 5% off for AARP members
Greyhound: 5% off (62+)
Hampton Inns & Suites: 10% off when booked 72 hours in advance
Hertz: up to 25% off for AARP members
Holiday Inn: 10%-30% off depending on location (62+)
Hyatt Hotels: 25%-50% off (62+)
InterContinental Hotels Group: various discounts at all hotels (65+)
Mainstay Suites: 10% off with Mature Traveler's Discount (50+); 20%-30% off (60+) Marriott Hotels: 15% off (62+)
Motel 6: 10% off (60+)
Myrtle Beach Resort: 10% off (55+)
National Rent-A-Car: up to 30% off for AARP members
Quality Inn: 20%-30% off (60+)
Rodeway Inn: 20%-30% off (60+)
Sleep Inn: 20%-30% off (60+)
Southwest Airlines: various discounts for ages 65 and up (call before booking for discount)
Trailways Transportation System: various discounts for ages 50 and up
United Airlines: various discounts for ages 65 and up (call before booking for discount)
U.S. Airways: various discounts for ages 65 and up (call before booking for discount)
Activities & Entertainment
AMC Theaters: up to 30% off (55+)
Bally Total Fitness: up to $100 off memberships (62+)
Busch GardensTampa: $3 off one-day tickets (50+)
Carmike Cinemas: 35% off (65+)
Cinemark/Century Theaters: up to 35% off
U.S. National Parks: $10 lifetime pass; 50% off additional services including camping (62+)
Regal Cinemas: 30% off Ripley's Believe it or Not: @ off one-day ticket (55+) SeaWorld Orlando: $3 off one-day tickets (50+)
Cell Phone Discounts
AT&T: Special Senior Nation 200 Plan $29.99/month (65+)
Jitterbug: $10/month cell phone service (50+)
Verizon Wireless: Verizon Nationwide 65 Plus Plan $29.99/month (65+)
*Check out our Secret Cell Phone Discounts to view all cell phone discounts available to you!
Miscellaneous
Great Clips: $3 off hair cuts (60+)
Super Cuts: $2 off haircuts (60+)
Since many senior discounts are not advertised to the public, our advice to men and women over 55 is to ALWAYS ask a sales associate if that store provides a senior discount. That way, you can be sure to get the most bang for you buck.
NEWEST APPRAISAL GUDELINE CHANGES!
There is now a requirement that all improvements to the home made in the last 15 years be listed by the homeowner! This is for Conventional Financing and FHA VA will take effect by Jan 1st 2012 but some lenders and investors are requiring it now!
Also
New Appraisal Standards Effective September 1 for Fannie Mae and Freddie Mac
It's finally happened: You've found the perfect home for your clients. Their financing is in place. But then...despite the comparables....the appraisal comes back low, threatening to ruin the whole deal.
To help make appraisals more consistent and accurate, and prevent situations like this in the future, the Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to develop the Uniform Appraisal Dataset (UAD). The UAD will (1) define what fields are required for an appraisal submission and (2) standardize both responses and definitions for certain fields.
Here are just a few of the items impacted by the new appraisal standards:
Days on the Market: Days on market is now defined as the total number of continuous days. If a property is taken off the market and then relisted, the appraiser will have to count all of the days it has been listed.
Offering Price: The original offering price and history of all price changes must be reported.
Property Style: Appraisers must use appropriate architectural design indicators such as "Colonial," "Farmhouse," etc. Descriptions such as 1 story, 2 stories, etc are no longer acceptable.
Condition of the Subject Property: An overall condition rating must be assigned from the predefined condition categories provided.
Quality of Construction: The appraiser must rate the quality of construction of the subject property and all comps using a list of 6 predefined quality levels.
The UAD appraisal standards are required for all appraisals conducted on or after September 1, 2011 for conventional loans sold to Fannie Mae and Freddie Mac.
As bad as this sounds for homeowners now, it should help the banks to get a better evaluation of the property and hopefully prevent low appraisal values from ruining sales in the future!
I have the form for sellers to fill out on this website under forms and documents button to the left of this screen.
Social Benefits of Homeownership
Social Benefits of Housing
Social Benefits of Housing by Carla Hill "Realty Times"
Recent research from the National Association of Realtors (NAR) outlines the importance of homeownership's relationship with the economy, but of the social benefits it provides.
NAR reports, "The economic benefits of the housing market and homeownership are immense and well documented. The housing sector directly accounted for approximately 14 percent of total economic activity in 2009."
What sorts of social benefits are provided through homeownership?
According to the study entitled, "Effects of Homeownership on Children: The Role of Neighborhood Characteristics and Family Income", teens from households of homeownership have a higher rate of staying in school than teens from rental households. In addition, daughters of homeowners also experience a lower rate of teen pregnancy.
In terms of education, in the study, “Measuring the Benefits of Homeownership: Effects on Children,” there have been significant findings that homeownership has a strong positive effect on educational achievement.
The NAR report goes even further to show that "the average child of homeowners is significantly more likely to achieve a higher level of education and, thereby, a higher level of earnings."
Homeowners deal daily with issues pertaining to home maintenance and financial responsibility, something NAR research shows teaches children "life management skills."
Studies have also found that homeownership increases the amount of civic participation in a community. This is due in part to homeowners feeling that they have a higher, more permanent stake in their community and its issues.
For example, a study by Glaeser and DiPasquale found that 77 percent of homeowners said they had at some point voted in local elections, compared with 52 percent of renters.
In addition to these great social benefits, higher levels of homeownership have shown to reduce crime rates in communities. "Homeowners have a lot more to lose financially than do renters. Property crimes directly result in financial losses to the victim. Furthermore, violent non-property crimes can impact the property values of the whole neighborhood. Therefore, homeowners have more incentive to deter crime by forming and implementing voluntary crime prevention programs." (NAR)
For more information about these studies, please visit Realtor.org.
Decorator Colors Through the Years
by Carla Hill
Travel back through time and our homes are a kaleidoscope of color. It seems every generation likes to break the rules of the previous decade and experiment with new colors. Color choices are a response to social and cultural, as well as economic factors.
In the fifties, science introduced new home materials and bright colors were easier to produce on a mass scale. Homeowners embraced this trend with open arms.
According to Kohler, "Expressing optimism for America's continuing prosperity, fashion and interior design led the way with a palette full of "pretty pastels" that were far removed from the drabs of the war years. The exuberance of the late 1950s also showed itself in such striking colors as turquoise, chartreuse and flamingo pink."
The 1960's was marked by a rebellion against the status quo. The hippie movement held hands with the psychedelic journey and popular colors of the day tell that story. While earthy elements were popular, new colors like "blueberry, Citron, Antique Red, Coppertone, Expresso, and Jade" were introduced by such companies as Kohler.
The 1970's saw browns, golds, and green (can anyone say avocado?) that reflected a re-emergence of interest in the environment and in the Southwest.
The 1980's found itself in a recession, where interest rates rose to nearly 20 percent. People turned to home for comfort and country became chic once more. Feminine colors, such as mauve, plum, country blue, and seafoam found their way into everything from counters to carpets.
The 1990's were a time of robust economy. Cities sprawled out into large master-planned suburban communities and with this fast growth came HOA's and restrictions on color choices. Planning allowed communities to maintain their uniformity. Taupe, tan, and other mild colors made their way into homes across the nation.
Today's colors also reflect both an ailing economy and a connection to the world as a whole. The recession of 2009 caused many homeowners to reconsider where they lived and how they spent their money. Many homeowners found themselves upside down in loans and instead of selling, chose to make updates to their current home. There has been a return to more subdued, simple palettes of white and creams.
Modern sensibilities and splashes of global brights have made their way into the mainstream. Cobalt blue, blacks, and rich greens make up today's cool palette. Sand, yellow orange, and a soft red play the warm palette's roles.
Stainless steel is seen in everything from stoves, fridges, and appliances to counter tops and backsplashes.
Decorators aren't afraid of colors, but it is always used in moderation. The themed rooms of the 1980's, where every inch of a bathroom was mauve from the tile and paint to fixtures, are out. Today, you'll find a subtle red accent in a set of pans or on an accent wall.
Published: August 23, 2011
Top Ten IRS Tax Tips for Individuals Selling Their Home
Top Ten IRS Tax Tips for Individuals Selling Their Home
IRS Summertime Tax Tip 2011-15, August 8, 2011
The Internal Revenue Service has some important information to share with individuals who have sold or are about to sell their home. If you have a gain from the sale of your main home, you may qualify to exclude all or part of that gain from your income. Here are ten tips from the IRS to keep in mind when selling your home.
In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.
If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.
If you can exclude all of the gain, you do not need to report the sale on your tax return.
If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.
You cannot deduct a loss from the sale of your main home.
Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.
If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.
If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year’s tax return.
When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.
For more information about selling your home, see IRS Publication 523, Selling Your Home. This publication is available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Links:
Publication 523, Selling Your Home ( PDF)
Form 5405, First-Time Homebuyer Credit and Repayment of the Credit ( PDF)
Form 8822, Change of Address ( PDF)
Subscribe to IRS Tax Tips
Page Last Reviewed or Updated: August 08, 2011
Market Concerns Produce New Record Low Mortgage Rates
MCLEAN, Va., -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates continuing to decline with the 30-year fixed averaging 4.32 percent marking a new low for 2011, and the 15-year fixed, 5-year ARM, and 1-year ARM averaging new all-time record lows this week.
30-year fixed-rate mortgage (FRM) averaged 4.32 percent with an average 0.7 point for the week ending August 11, 2011, down from last week when it averaged 4.39 percent. Last year at this time, the 30-year FRM averaged 4.44 percent.
15-year FRM this week averaged 3.50 percent with an average 0.7 point, down from last week when it also averaged 3.54 percent. A year ago at this time, the 15-year FRM averaged 3.92 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.13 percent this week, with an average 0.5 point, down from last week when it averaged 3.18 percent. A year ago, the 5-year ARM averaged 3.56 percent.
1-year Treasury-indexed ARM averaged 2.89 percent this week with an average 0.5 point, down from last week when it averaged 3.02 percent. At this time last year, the 1-year ARM averaged 3.53 percent.
Frank Nothaft, vice president and chief economist at Freddie Mac, reports, "Renewed market concerns about the European debt markets led investors to shift funds into U.S. Treasuries, pushing long-term yields lower. Further, in its August 9th Federal Open Market Committee statement, the Federal Reserve noted that economic growth so far this year had been considerably slower than it expected and that overall labor market conditions had deteriorated in recent months, leading the Committee to conclude that an exceptionally low federal funds rate should be maintained at least through mid-2013. These developments helped to ease mortgage rates lower this week."
"Lower mortgage rates will help to maintain the high degree of home-buyer affordability in the market. The National Association of Realtors® reported that its affordability index over the past three quarters has indicated the highest affordability since the inception of the index in 1970."
Published: August 12, 2011 Realty Trends Inc.
Buying A Home In A Homeowner's Association?
What To Look For And Questions To Ask!
TIP: Investigate Before Promulgate
Gone are the days when you take a listing with a wink and a handshake, the same holds true for writing an offer. The well-advised agent checks out the seller and their financial wherewithal to sell the property as well as the buyer before showing property. When a condo is the subject for a listing or purchase, the next step in the investigation process should be the financial wherewithal of the Homeowner’s Association (HOA). Take the following real life situations to heed:
· An agent prequalifies an FHA buyer, shows condos, writes an offer acceptable to the seller and within days of closing finds out that the delinquency rate of HOA dues is 22% which exceeds the maximum of 15% for FHA and FNMA. – Deal Goes Down
· A buyer’s agent follows the same steps as above and within days of closing finds out that the number of rental units vs. owner-occupied is above the maximum of 49%. – Deal Goes Down
· How about title liens, usually mechanic liens, for unpaid work contracted by the HOA (i.e. roofers, pavers) as well as utility judgments (i.e. unpaid water bills)?
· How about an HOA that is short on reserves?
What to do? Investigate. Adhere to the Contract to Purchase, which states, Paragraph 8:
8. HOMEOWNER ASSOCIATION/CONDOMINIUM/LANDOMINIUM DECLARATIONS, BYLAWS AND ARTICLES: If the Real Estate is subject to a Homeowner Association Declaration or is a Condominium, Seller will provide Buyer with a current copy of the Association Declaration, the Association’s financial statements, Rules and Restrictions, schedule of monthly, annual and special assessments/fees, architectural standards (to the extent not included in the Rules and Restrictions), the Bylaws and the Articles of Incorporation and other pertinent documents (“Documents”)…Buyer shall have the right to disapprove of the Documents…”.
Be proactive rather than reactive. Be you the listing agent or buyer’s agent, ask questions, obtain and review documents, provide information. Investigate before listing the property to determine if the property is “saleable” and under what conditions. Investigate before allowing your buyer to pay for inspection(s) and appraisal only to find out the condo does not qualify for certain loan types.
Even if your client is paying cash or conventional financing, they should have the same information so they can make an informed decision. Would you buy a condo under less than desirable circumstances?
Copyright May 2010
Condominium and Homeowner Association Checklist
A product of the
CINCINNATI AREA BOARD OF REALTORS®, INC.
Approved for exclusive use by REALTORS®
Real Estate known as ___________________________________________________________ (address) Unit Number _____________ ("Real Estate"),
County of ___________________________________________, State of _______________________, Zip code _________________
Seller to make a good faith effort to provide the most current available information checked below (“Information”). Any expenses incurred in the
procurement of the Information shall be the sole responsibility of the Seller.
• Seller to note any unavailable item requested on the Condominium and Homeowner Association Checklist as not available (N/A) and initial beside it.
Name of Unit Owners Association _________________________________________________________________________________________
Condominium Board Contact (officer-name-phone) ___________________________________________________________________________
Management Company Contract (company-name-phone) ______________________________________________________________________
Declaration & Bylaws which submit the property to the provisions of the Ohio Condominium Statute (Chapter 5311 of the Ohio Revised Code).
Condominium Drawings showing this unit, buildings, easements and limited common areas specific to this unit.
Amendments to the Declaration, specifically those affecting this unit or affecting changes in the common or limited common areas.
Articles of Incorporation of the Unit Owners’ Association (assuming that the association has been incorporated).
Rules and Regulations of the Unit Owners’ Association, addressing such issues as number and designation of officers, meetings, quorums,
voting rights, etc.
Financial Statements showing the nature of the association’s assets.
1. Most current balance sheet
2. Most current income and expense statement
3. Current budget
4. A statement of the amount of any assessment against this unit
5. Most recent bank statement of Reserve Account with certification from the management company that unencumbered reserves are adequate
to repair and replace major capital items in the normal course of operations without the necessity of special assessments
6. Five year history of dues increases and assessments
Occupancy Rate: A statement from the association showing the percentage of Owner Occupied units vs. Rental units.
Law Suits, Legal Actions or Judgments: A statement from the association indicating the nature and status of any pending law suits, legal
actions or judgments in which the unit owners’ association is a party.
Rights of Refusal: A statement from the association of any rights of first refusal given to a person or the association to preemptively purchase the
unit. If existing, these rights must be released or waived not later than 10 (ten) days after the Buyer’s receipt of this document.
Insurance: A certificate of insurance from the association insurance provider.
Minutes: A copy of the minutes of the three most recent board meetings and the minutes of the most recent annual meeting.
Payment of Dues and Other Financial Obligations: A statement from the association confirming when the next (assessment) payment is due, the
amount of such payment and that dues are current. Include Association Initiation fee, Reserve Contribution, Association Transfer Fee and statement
of amount of any unpaid fees, penalties, arrearages, etc., if applicable.
Community Development Charge: Documentation of community development charge, if any, applicable to the premises which was created by a
covenant in a recorded instrument. Include the following information: recorded at (county) ___________________________________,
Vol.________________, Page number___________, or Instrument number_____________. (Note: If the foregoing information is not provided
and a community development charge affects the premises, the contract may not be enforceable by the Seller or binding upon the Buyer
pursuant to Section 349.07 of the Ohio Revised Code.)
Other Documentation: ________________________________________________________________________________________________
Seller represents that the Information provided is done so in good faith based on his/her actual knowledge as of the date signed by Seller.
_______________________________ DATE/TIME ______________ _______________________________ DATE/TIME ______________
(Seller’s Signature) (Seller’s Signature)
Buyer Receipt and Acknowledgement: Buyer’s signature below does not constitute approval of any provided information.
_______________________________ DATE/TIME ______________ _______________________________ DATE/TIME ______________
(Buyer’s Signature) (Buyer’s Signature)
This checklist is to be used to assist sellers of real estate subject to homeowner association regulations in preparing for requests from buyers or
potential buyers for information related to those regulations. This document does not constitute an agreement between parties to a real estate contract,
nor is it to be construed as a warranty of any of the information provided in conjunction with this checklist.
What Are The Odds?
Real Estate Is Legalized Gambling?
Each month I create the market graphs charting the residential unit sales, dollar volume, monthly housing supply, average sales price and then interpret and explain what’s happening in the market to convey to you what it means to you in buying or selling real estate. These charts are a version of calculating the odds of selling without the use of fancy mathematical equations.
For the month of February 2011 (call me for your copy of the charts) here are the basic numbers as compared to February 2010:
· Unit Sales were up by 30 units or about 3%
· Active Inventory was up by 401 units or about 3%.
· Absorption Rate remained the same at 13.4 months of housing supply.
· Dollar volume of sales was down by just under a $1,000,000 or about 1%.
· Average sales price was down by $5,632 or about 4%.
According to Wikipedia, gambling is the wagering of money or something of material value (referred to as "the stakes") on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods. With gambling comes risk.
Every time a seller lists their property they take a risk…a risk of it selling…a risk of it selling for under their desired terms and conditions, which by the way sometimes change along the way given the “odds” of selling.
So how does a seller increase their odds of selling?
1. Avoid the “Coulda, Woulda, Shoulda” Syndrome (looking at what they paid for it, what they owe, what they put into it, hanging on to the results of an appraisal, what others have said the property is worth).
2. Pay attention to current market data relative to the property.
3. Disregard national stats.
4. Re-examine the market data at least every month.
5. Absorb showing feedback (i.e. the number of online and physical showings, prospective buyer and agent comments, and the lack of showings). Silence can be louder than words or actions.
6. Price the property in accordance to its condition as it relates to the competition. No matter how hard an agent tries, they cannot sell an overpriced product.
Every time a buyer and seller enter into a contract they take a risk…a risk of it closing…a risk of it closing under the terms and conditions desired by each.
What I find interesting is that no one really sees their part of the transaction as being risky. How many times have I heard from a buyer or seller when something goes awry, “…but they signed a contract”, signing a contract does not guarantee desired results.
Having an accepted contract certainly increases one’s odds of heading to the closing table, but does not guarantee it. In fact, in most contracts there are a number of known hurdles that need to be cleared before closing and then there are the unknown hurdles that can arise and take people by surprise. In either the known or unknown hurdle case, there are steps you can take to increase your odds of “winning” (a.k.a. closing). Some of the more common hurdles in our market:
NOTE: References to contractual matters are based on the current Contract to Purchase available through the Cincinnati Area Board of REALTORS®, Copyright April 2009 and is not intended to be legal advice or an interpretation of any other contract form used.
Financing
Whether paying cash or acquiring a loan there are steps a buyer needs to take to satisfy this contingency or the seller may terminate the contract. I’ve seen buyers lose out on properties because they did not fulfill their end of the contract by applying for financing within the agreed upon time frame and providing either a verification of funds or a pre-approval letter from a lender or obtain a written loan commitment as set forth in the contract. I’ve seen buyers and their agents stunned, and both threatening legal action when they failed to comply with what they agreed to do. What does the contract state? “If Buyer fails…then Seller may…terminate this Contract.” Seems pretty clear to me.
BTW, a pre-approval letter is not a guarantee that the buyer will receive a loan, it only means that the lender says the information “looks good” for getting a loan but is subject to verification of information and appraisal and that nothing changes in the buyer’s financial capability (i.e. buyer loses a job, buyer’s income is decreased, buyer takes on new debt and upsets the income to debt ratio).
Inspections
If the contract is contingent upon inspections of the property satisfactory to the buyer, the buyer may accept the property as is, ask for repairs or compensation in lieu of repairs, or terminate the contract without further explanation (the most frustrating for a seller). In the case of the buyer requesting repairs or compensation for repairs, the parties enter the Settlement Period. The contract states, “If written settlement…is not reached within the Settlement Period…and Buyer has not withdrawn the request for corrections in writing, this Contract shall be null and void.” A seller may not respond within the stated time frame and the contract is rendered null and void. Why might a seller not respond? They have a back-up offer and they’ve been waiting for an opportunity to render the contract void to accept the other offer, often to the surprise of the buyer.
And remember, the contract also states, “The Buyer shall have the right to terminate the contract during the Settlement Period.” No reason required.
Appraisal
If the property does not appraise for at least the sales price, the buyer is not obligated to purchase. Hmmm…solutions?
· Seller (or Buyer) requests an appraisal review, appraiser does or does not make an adjustment, loan is or is not approved.
· Buyer walks away, seller puts house back on the market.
· Buyer agrees to bring more money to the table to bridge the gap of appraisal and sales.
· Seller agrees to lower the sales price to the appraised price.
· Seller and buyer each agree to contribute…buyer brings money and seller lowers price…a.k.a. compromise.
Title Search
Traditionally, title searches are done a couple of days before closing. What happens when the title search is done, an “unknown” lien is revealed which delays closing past the closing date, beyond the patience level of the buyer and extensions are not signed by the parties? Could become a void contract.
Contingency Sale (a.k.a. The Domino Effect)
Buyer needs to sell home before buying Seller’s home. This can get tricky when there is a “chain” of buyers. If the buyer’s home is under contract to close, each seller should be requesting a copy of the accepted contract and pre-approval letter/verification of funds of the buyer’s buyer and clearly understand the circumstances (contingencies) of the sale before accepting a contract.
For Buyers And Sellers:
Reduce Your Risk – Increase Your Odds
Step #1 – Read the contract and any and all addendums in their entirety prior to signing.
Step #2 – Ask questions of your REALTOR® and/or legal counsel if not understood.
Step #3 – Include contingencies to confirm, review, strategize and ultimately, protect your desired position (i.e. review of legal counsel, substantiation of zoning and use of property).
Step #4 – Adhere to time lines.
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